We study the behavior of solutions for stochastic differential equations such as the Heston stochastic volatility model. We examine the numerical solutions using Euler–Maruyama, Milstein and stochastic Runge–Kutta methods to investigate whether there is a role of the methods for different...

In this study I apply forward sensitivity analysis to the dynamical system of nonlinear asset flow differential equations (AFDE). I find that all parameters in AFDE are needed and can be estimated from market prices and net asset values data. Moreover, the market price is the most fluctuating...